Just my experience from watching many O&G companies over time. I note that V10 did an appraisal and agreed that US$5 was a more realistic figure .... but he can do his own justification. I don't think that the Oil price will fall as the consumption of Oil on a world basis is slowly increasing despite the push for alternatives. There has been a dramatic reduction in the exploration for Oil and Gas over the last 10 years and that may mean a shortage in supply will occur sometime going forward. These discoveries in the orange basin will potentially change that a bit but it will take a long lead time for the discoveries to be brought onstream. The infrastructure needed to bring it onstream will take time to construct and install.
PCL Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)